Last year I had requested for the CIBIL report on 22-11-2011. The score was 787.

This year again I have requested for the CIBIL report on 30/10/2012. The score I see this time is 628. I see the score drop of 159 point.

The fact is, I have made the EMIs of my personal loans and consulmer loan regularly, Credit utilization was very less in during this year. I have made the payments of credit cards and personal loans on time. More details are provided below.

1. I have closed 2 credit cards (1 of standard charted and 1 of citi bank) by paying the out standing amount

2. There were two accounts closed (1 of Bajaj finance for electronic loan and 1 of HDFC bank – for personal loan)

3. There were two applications that I have filled for credit cards ( 1 for citi and 1 for IndusIND) and 1 for personal loan through ICICI. However I have requested them to cancel the same.

I would like to know why this much of drop in 1 year. Also, can I have calculation formula that you sue for calculating credit score? Even after making clear payments without any mis-payments and cheque bounces, I am wondering there is huge dip in score.

I am more worried about this now. Even if I continue making payments of EMI and credit cards, by the next year score might come down to below 500?

I am planning to go for home loan. With this score I am afraid Banker refuse to give loan.

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12 replies on this article “My CIBIL score has been dropped (159 points in 1 year)”

Dear sir
I’m Madhu from mysore
I have purchased my report on 1.06.205 score 616
Now I cleared full due amount for education loan and also Cibil showing no due but score is same 616 (13.10.15) how many days required to increase my score with regular payments

Dear Hari, please do not fall for every other Credit Card offer & apply. Too many application in a short period of time, indicate your credit hungry behavior & it ‘ll impact your score negatively. As it’s nearly 4 months into your last score reporting, please apply again now to know your current score as well as report.

Thank you experts for providing such information. Many people doesn’t know about the credit report calculations and impact of inquiries. I was unknown about these and whenever I see good offers on credit cards, I used to apply. Not only me there are so many people who do these.

There are many factors in a credit report that can affect your score like write – off, enquires, closing of credit cards, secured loans, unsecured loans etc etc. What has affected your score can be established only after your credit report is analysed. It is difficult to say whether your home loan would be approved or not as much of it depends on the lending bank – improving your credit score is always advisable.

Hair, You must remember that credit profiles evolve over time. All things remaining constant, you would received a score of 660 in new version. May be you have added more debt or you have enquired for new credit, which could have pulled your score down by few more points. So you have to separate the effect of impact due to algorithm/score formula change from the fundamental shift in your credit profile.

I think the major reason for drop is the latest changes which has happened to CIBIL Scoring system where even if there is a history of less than 6 months , a person gets a score between 1-5 and due to their algorthim change , the old cibil customers will also see a big drop .

But not much to worry on this , Its like earlier a person having a score of 750 will now have a score of 660 or same number like that . So in reality the number has gone down , but in the same way the bank benchmark will also go down . So 750 “then” is same as 660 “now” .